In a simple linear regression analysis of neighborhoods, it is found that for ea
ID: 3179191 • Letter: I
Question
In a simple linear regression analysis of neighborhoods, it is found that for each unit increase in poverty, there in an increase of 2 crimes/1000 residents (B= .002 P=.01). Using the ideas of statistical versus substantive significance, discuss what we should consider when deciding for example, how influential it would be to reduce the poverty rate in neighborhoods. In a simple linear regression analysis of neighborhoods, it is found that for each unit increase in poverty, there in an increase of 2 crimes/1000 residents (B= .002 P=.01). Using the ideas of statistical versus substantive significance, discuss what we should consider when deciding for example, how influential it would be to reduce the poverty rate in neighborhoods.Explanation / Answer
It is a simple linear regression analysis of neigbourhoodds, where for each unit increase in poverty, there is an increase of 2crime/1000 residents .
So linearregression equation can be
y = a + 2x [ where y = crimes/1000 residents. x = poverty]
Substantive significance is all about the size of a relationship/ an effect, it is concerned with meaning, as in, what do the findings say about population effects themselves. iwhereas statistical significance is about measurement precision and their relationship, it reflects the improbability of findings drawn from samples given certain assumptions about the null hypothesis.
statistical significance revolves around p value and significance value alpha or confidence interva. Herein, substantive significance of a result has nothing to do with the p value and related with the estimated effect size. Here small variable put more effects on the result.
Here substantive significance is of more value because stastistical signifcance gives only a direction but not magnitude of the impact. Here the given example, stastistically tell us apositive correlation between cromes and poverty, but do it put substantive significant impact? Like, it is possible that There were already high crime rate in the neighbourhoods due to some other factors like drugs etc., so poverty effect is just a correlation. So we should use substantive significance. It will reduce the poverty level quite effectively in neighbourhoods because it will take consideration of all the possible factors of crime rates.